The Great Supply Chain Shift: Can India Capture the China+1 Opportunity?
As global companies diversify away from China, India has attracted $85 billion in FDI since 2023 — but infrastructure gaps and policy inconsistency threaten to squander the moment.
Key Takeaways
As global companies diversify away from China, India has attracted $85 billion in FDI since 2023 — but infrastructure gaps and policy inconsistency threaten to squander the moment.
- India attracted $85 billion in FDI between 2023 and 2026 from supply chain relocation
- Electronics manufacturing PLI schemes drove $25 billion in committed investment
- Infrastructure gaps — port turnaround time 2x global average, power costs 30% higher than China
- 14 states have launched separate semiconductor and electronics manufacturing incentive schemes
Evidence
India has surpassed Vietnam as the top alternative manufacturing destination to China.
Verified83%- ▶India received $85 billion in FDI from supply chain relocation since 2023 vs Vietnam's $45 billion in the same period, though Vietnam has higher ease of doing business scores.
India's logistics infrastructure is globally competitive.
Moderate79%- ▶India ranks 38th on the World Bank Logistics Performance Index. Port turnaround time (48 hrs) is double the global average (24 hrs), and logistics costs are 14% of GDP vs 8% in developed economies.
Key Numbers
Timeline
FDI Inflows from Supply Chain Relocation ($ Billion)
Apple iPhone Production in India (% of Global)
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Frequently Asked Questions
Sources
Government
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